On 11th March 2020, the Chancellor set out a £12bn package of measures to support businesses through the economic disruption caused by COVID-19.
Further to the Budget, on 17th March the Chancellor announced an unprecedented package of government-backed and guaranteed loans to support businesses, making available an initial £330bn of guarantees – equivalent to 15% of GDP.
Learn more about the latest government measures
Included within these measures is the Coronavirus Business Interruption Loan Scheme (CBILS), delivered by the British Business Bank.
Learn more about CBILS
What is the Coronavirus Business Interruption Loan Scheme (CBILS)?
The Coronavirus Business Interruption Loan Scheme (CBILS) provides financial support to smaller businesses (SMEs) across the UK that are losing revenue, and seeing their cashflow disrupted, as a result of the COVID-19 outbreak.
There is no fee for businesses to access the scheme and the UK Government will cover the first 12 months of interest payments and any fees lenders charge under a CBILS facility. This means businesses benefit from lower upfront costs and repayments.
CBILS facilities include:
– Term loans
– Asset finance
– Invoice finance
CBILS has been significantly expanded along with changes to the scheme’s features and eligibility criteria. The changes mean even more smaller businesses across the UK impacted by the Coronavirus crisis can access the funding they need.
Importantly, access to the scheme has been opened up to those smaller businesses who would have previously met the requirements for a commercial facility but would not have been eligible for CBILS. Insufficient security is no longer a condition to access the scheme.
This significantly increases the number of businesses eligible for the scheme. The expanded scheme will be operational with lenders from Monday 6th April 2020.